Buy A Property In Dubai - Flexible 1% Monthly Payment Plan

Dubai Developers Attract New Buyers with Favorable 1% Monthly Payment Plan

Dubai Developers Attract New Buyers with Favorable 1% Monthly Payment Plan


Dubai developers entice new buyers with favourable 1% monthly payment plan

Buying a house is a dream for many and, at the same time, a nightmare. Saving for a down payment, acquiring a mortgage, and locating the perfect property are no easy feats. However, what if owning a home with only 1% monthly payments was possible? Does that sound too good to be true?
To begin with, it’s not in Dubai where some developers are giving this enticing payment plan for their properties. In this blog post, we will discuss the 1% payment plan, how it works, and why buying luxury property in Dubai can be a good idea. Let’s get started!

What is a 1% payment plan?

The 1% payment plan enables you to buy a dream house in Dubai, paying only 1% monthly of total price. This implies that you don’t need a huge upfront payment, and there are no high-interest rates or charges. You only pay 1% of the property monthly until you own it 100%. For instance, when you buy a million-dirham property, you can be required to pay 10k dirham per month for 100 months, which is approximately eight years. Much better than paying 25% (AED 250,000) and a 3% mortgage interest rate per month (AED 3,735) on a 25-year mortgage.

How does the 1% payment plan operate?

Some developers in Dubai offer a 1% payment plan to increase the number of buyers and investors interested in their projects. They normally partner with a bank or a financial institution that funds buying. Typically, Danube Properties offers a convenient 1% payment plan for its off-plan projects.

A buyer signs a contract with the developer and the bank stating they will pay 1% of the ownership monthly. Once the buyers pay 50 % of the property’s price, they also acquire the title deed; this gives them a better sense of security and flexibility. However, this percentage can vary builder to builder. Some property builders apply 25 to 30 percent for title deeds.

Unlike in a Rent-to-Own situation where one pays rent for some time and then buys the property, in a 1% payment plan, you pay 1% of the total house price per month. The 1% payment plan makes you buy luxury property in Dubai from day one, paying a monthly amount towards the purchase price, not rent.

Calculating The 1% Rule

The 1% rule can be easily calculated. Simply multiply the purchase price of the property by 1%. Place the comma of the purchase price to the right, two lines. You should charge at least what the result indicates as monthly rent.You will also want to add the cost of any repairs needed to the house’s price and multiply the house price by 1%.

Image placeholder
Image placeholder

What is so good about a 1% payment plan?

The 1% payment plan has many benefits for buyers who want to buy a property in Dubai, such as

  1. Affordable

    It is only one percent of the monthly property price, much less than Dubai’s average rent and mortgage paymenT.It also saves you interest and closing fees because you pay the property off faster than a conventional mortgage.This opens new investment opportunities in Dubai in the real estate sector.

  2. Flexible

    There are many properties and locations that you can choose from depending on what your budget and lifestyle allow. Additionally, you can sell or lease your property,provided you clear the balance with a developer and the bank.

  3. Security

    Once you pay 50% of the price, you get the title deeds, giving you full ownership, and you can use it as collateral for other loans or investments. Secondly, you don’t need to bother about the developer getting broke and delaying the completion of the project as you will deal with the bank funding the purchase.

What properties are 1% payable in Dubai?

Dubai offers many property buying options using the 1% payment plan. Some of the most popular and reputable developers that provide the 1% payment plan are

  1. Danube Properties

    Danube, a leading developer in Dubai, offers affordable yet quality projects. Some properties that provide the 1% payment plan include Danube Eleganz, Elz, Lawnz, Resortz, and Bayz in Arjan, International City, Al Furjan, and Business Bay. These properties present studio, one-bedroom, and two-bedroom apartments for sale for AED 290,000.

  2. MAG Lifestyle Development

    MAG is another reputed developer in Dubai known for its luxury and lifestyle projects. Some of its properties that offer the 1% payment plan, located in Dubai downtown, City of Arabia, and Dubai South. Studio, one-bedroom, two-bedroom, and three-bedroom apartments range from AED 499,000.

  3. Azizi Developments

    Azizi is a popular developer in Dubai specializing in creating stylish and modern communities. Some properties of Azizi Venice also offer 1% payment plans. Studio, one-bedroom, and two-bedroom apartments are available for AED 450,000.

Certainly! If you have any further questions or want to discuss Dubai's real estate market or any related topics, please don't hesitate to contact us. We are here to help you and provide any information or assistance you may require. We are eagerly anticipating your response!

Direct Access

Check out our exclusive selection of off-plan and ready properties from dubai top developers. Diamond City Real Estate is dedicated to exceeding your expectations in Dubai, United Arab Emirates!

Ready to take the next step towards finding your dream property in the UAE? Contact our expert team today for personalized assistance and unparalleled service. Whether you have questions about our latest offerings, need guidance on investment opportunities, or want to schedule a viewing, we're here to help every step of the way.

Give us a call at +971-50-217-6037 to speak directly with one of our experienced real estate professionals.

Contact Sales


The 1% rule is a guideline that states that the monthly rent income from a property should be at least 1% of the property’s purchase price.

To use the 1% rule, multiply the purchase price of a property by 0.01. The result is the minimum monthly rent that the property should generate.

Yes, some properties offer payment plans where investors can purchase a property with only 1% down. This allows entry into the real estate market with a small initial investment.

Other costs like taxes, insurance, maintenance, vacancy rates, and capital expenses should also be accounted for to determine true cash flow.

The property may not be profitable and should be avoided, or the purchase price may need to be lowered to meet the 1% monthly rent threshold.

We’re always on the hunt for people with a genuine passion for real estate. If you believe you are someone who is ready to take the next step and unleash a successful career in real estate, email your CV and a short introduction to

Diamond City

Real Estate

+971 (4) 438 5233